8 international firms submit bids for KNPC's new oil refinery

Eight international companies have submitted bids in response to a tender floated by the Kuwait National Petroleum Company (KNPC) to build a new oil refinery reports Al-Seyassah quoting an official oil source. "Eight international companies from among the qualified and specialized nine have submitted their bids. Some smaller companies are also expected to submit their bids before August which is the period fixed by KNPC for interested companies to submit their bids," said the source. KNPC invited international companies for a pre-qualification round two weeks ago for participation in the project with an estimated cost of $5 billion, say sources.

The capacity of the new refinery is approximately 600,000 barrels per day and completion of this project together with another project for developing the existing oil refineries in Ahmadi and Mina Abdullah will take the total capacity of oil refineries to 1.20 million barrels per day, they explain. The new oil refinery is expected to replace Al-Shuaiba oil refinery in 2010, say sources, adding the project consists of treatment units as well as buildings, facilities and other installations. Meanwhile, Kuwait National Petroleum Company (KNPC) recently announced a net profit of over $400 million for the first quarter of the current financial year, reports Al-Rai Al-Aam daily quoting a highly placed official in KNPC.

The company which posted a net profit of $2.1 billion in the last financial year is continuing its good performance said the source, adding KNPC showed a profit of $300 million dollars in the first two months of this financial year. Increasing prices of oil and oil products in the international markets are mainly responsible for this profit explained the source. If the price of oil continues to stay in the current range KNPC can hope for even better profits than the last year added the official. KNPC is operating three oil refineries with a total production capacity of 920,000 barrels per day, said the source in conclusion.